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Vietnam top carmaker VinFast's revenue surges as EV deliveries jump
HANOI (Agencies): Vietnam's VinFast said its first-quarter revenue more than doubled as deliveries of its electric vehicles jumped nearly four times in the three-month period.
Revenue grew 150% to US$656.5 million in the January-March period compared with analysts' average estimate of US$520 million, according to data compiled by LSEG.
The EV startup made the statement at a conference on expanding localization and developing supplier systems that it organised on Monday.
Accordingly, the manufacturer will offer a 50% discount on land rental fees for the first three years and 20% for the next five years for businesses that are its suppliers when developing factories at two VinFast complexes in Hai Phong city and Ha Tinh province.
In addition to support in terms of premises, VinFast commits to buying its suppliers' all products per plans agreed with them. It will also connect the domestic suppliers with foreign companies according to their demand.
"As a result, VinFast's suppliers can receive technology and experience transfer, gradually improve international competitiveness and proactively participate in the global supply chain," it said in a release.
The carmaker aims to have the localization rate of its products rise to 80% by 2026. At the end of 2024, Le Ngoc Anh, director of VinFast Vietnam, had disclosed that the localization of its EVs was more than 60%, including the body, engine, roof, and shock absorbers.
Compared to internal combustion engine vehicles assembled in Vietnam, this rate is quite high, because the highest localization rate of gasoline and diesel vehicles in the country is about 40%, according to VinFast.
The company noted that its method of calculating the localization rate is similar to that of the Ministry of Industry and Trade and other car companies in Vietnam.
VinFast was founded in 2017 by billionaire Pham Nhat Vuong, who is currently the company's CEO. In 2022, it switched to the production and sales of EVs. In 2025, the firm aims to sell 200,000 cars.
In the first four months of this year, it sold nearly 44,700 cars, completing about 22.3% of the year's plan and leading the domestic market.
In 2024, VinFast reaped over VND44,000 billion ($1.8 billion) in revenue, up 58% from 2023. However, the company suffered a net loss of more than VND77,354 billion (over $3 billion) last year. - Reuters
